Buy Max India from a long-term perspective: Hemang Jani, Sharekhan

Hemang Jani, Senior Vice President, Sharekhan, in a chat with ET Now talks about Max India.

Max India reported a net loss, though there was a good momentum in terms of their total income. Even in today’s trade, we are seeing a bit of a downward bias. Volumes are also dwindling but do you still maintain your bullish stance?

Absolutely, we like this company for two reasons. One is that it is one of the few companies which is offering both healthcare and insurance in one particular space and the company is one of the few companies to report operating profit in as far as their life insurance business is concerned. It has a very low dependence on the ULIP, which is a product, which has got into some kind of a controversy.

We think that the insurance sector per se offers a huge potential and this is one of the few companies which is extremely well positioned to take advantage of that available at a very good valuation. So we think that this is one of the companies that one should buy from a long-term perspective.